This article summarizes recent research on one of the developmental fa
shions of our time - democratic decentralization. After discussing var
ious definitions of 'decentralization', it surveys the benefits that c
an follow when democratic decentralization works well. Among these are
greater responsiveness, increased participation and two-way informati
on flow between state and society, and reductions in absenteeism by lo
cal-level government employees and in corruption. It reviews decentral
ization's limitations - notably its incapacity to facilitate poverty a
lleviation. It then examines problems which can prevent decentralizati
on from working well. It helps enormously if a country attempting it h
as had a sustained experience of democracy, but that is not true in mo
st of Africa and Asia. Finally, the article suggests approaches that c
an assist decentralization to work well - most crucially the provision
of adequate powers and resources from above, and measures to ensure t
hat bureaucrats will be accountable to elected representatives, and th
at representatives will be accountable to citizens.